January 2, Via Federal Express and Electronic Mail

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1 California Independent System Operator Corporation January 2, 2018 Via Federal Express and Electronic Mail Marie Jordan President and Chief Executive Officer Peak Reliability, Inc NE 41st Street, Suite 201 Vancouver, WA Re: Notice of Withdrawal from Funding Agreement of California Independent System Operator Corporation Dear Ms. Jordan: Pursuant to Section 5.4 of the Reliability Coordinator Funding Agreement among Peak Reliability, Inc. and Funding Parties dated July 23, 2015 ( Funding Agreement ), the California Independent System Operator Corporation ( CAISO ) hereby provides notice of its withdrawal from the Funding Agreement. Section 5.4 of the Funding Agreement requires that written notice of withdrawal be provided to each other Party. In accordance with this requirement, the CAISO is sending a copy of this letter to each Funding Party s designated representative using the contact information provided on Peak Reliability s website. 1 Section 5.4 states that a notice of withdrawal shall be effective as of the date specified, provided that such notice must be given not less than eighteen full calendar months prior to withdrawal. In accordance with this provision, the CAISO s withdrawal from the Funding Agreement will become effective as of September 2, We will, of course, work with Peak to ensure an orderly transition throughout the withdrawal period. Sincerely, Steve Berberich President and Chief Executive Officer cc: Funding Parties Listed on Attachment A 1 See Attachment A to this letter. The designated representative information contained in Attachment A was obtained at: District%20No%2e%201%20of%20Chelan%20County%2c%20WA%2epdf&&PageFirstRow=1&&View={2 E03B1B A41F-2A633100D56F}. The notice is being sent by U.S. mail and to each of those representatives Outcropping Way Folsom, CA

2 ATTACHMENT A FUNDING PARTIES CONTACT INFORMATION Sarah Kist Arizona Public Service Co. (APS) 2124 W. Cheryl Dr. Mail Station: 3240 Phoenix, AZ sarah.kist@aps.com Tina Lee Arlington Valley, Inc Allen Parkway, Suite 2280 Houston, TX tlee@starwestgen.com Bryan Cox (Alternate: Jeff Schlect) Avista Corporation 1411 E Mission Ave Spokane, WA bryan.cox@avistacorp.com (Alt: jeff.schlect@avistacorp.com) (Alt: ) James R. Shetler Balancing Authority of Northern California 6001 S Street MS D-109 Sacramento, CA jimshetler@thebanc.org Denton McGregor Black Hills Power, Inc. PO Box 1400 Rapid City, SD denton.mcgregor@blackhillscorp.com Susan Millar Bonneville Power Administration Transmission Systems Operations - TO PO Box 491 Vancouver, WA sbmillar@bpa.gov

3 Denise Walsh, Controller California Independent System Operator Corporation 250 Outcropping Way Folsom, CA Warren Rust Colorado Springs Utilities Mail Stop Code: Nichols Boulevard Colorado Springs CO Ernesto Martinez El Paso Electric Company PO Box N. Stanton El Paso, TX Dean Ahlsten Eugene Water & Electric Board 4200 Roosevelt Blvd. Eugene, OR Rodney Romero Farmington Electric Utility System 101 N Browning Parkway Farmington, NM rromero@fmtn.org (505) JT Thompson Gridforce Energy Management, LLC 1331 Lamar Street Suite 560 Houston, Texas jt.thompson@grid4ce.net

4 Tina Lee Griffith Energy LLC 2929 Allen Parkway, Suite 2280 Houston, TX Ben Brandt Idaho Power West Bridger Street Boise, Idaho R. Marc Printy Imperial Irrigation District 333 East Barioni Boulevard PO Box 937 Imperial, CA Pam Feuerstein Intermountain Rural Electric Association 5496 N US HWY 85 Sedalia, CO pfeuerstein@irea.coop Kenneth Silver Los Angeles Department of Water & Power 111 N. Hope St., Room 949 Los Angeles, CA Kenneth.Silver@ladwp.com (213) Michael Manarovici MATL LLP st Street SW Calgary, Alberta, Canada T2R 0Z5 michael.manarovici@enbridge.com

5 Greg Salyer Modesto Irrigation District P.O. Box 4060 Modesto, CA Marc DeNarie NaturEner USA, LLC 394 Pacific Avenue, Suite 300 San Francisco, CA (415) Walter Spansel Nevada Power Company 6100 Neil Road, Mail Station: S3B40 Reno, NV Mike Terry New Harquahala Generating Company P.O. Box 727 Tonopah, AZ Cassandra Begay NNSA Los Alamos Field Office 3747 W. Jemez Road Los Alamos, NM Michael R. Cashell NorthWestern Energy 40 E. Broadway Butte, MT

6 Rick Vail PacifiCorp 825 NE Multnomah Street LCT 1600 Portland, OR Sandra Pea, Compliance Manager Pend Oreille County Public Utility District #1 P.O. Box N. Washington Newport, WA Jeff Landis Platte River Power Authority 2000 East Horsetooth Road Fort Collins, CO Frank F. Afranji Portland General Electric Company 21 SW Salmon St. (3WTC0409) Portland, OR Public Service Company of Colorado 1800 Larimer Street, Suite 6 Denver, CO gerald.r.deaver@xcelenergy.com David Eubank - Director, Power Operations Public Service Company of New Mexico Corporate Headquarters MS EP-11 Albuquerque, NM deubank@pnm.com (office) (cell) 5

7 Chad Bowman Public Utility District #1 of Chelan County, WA PO Box 1231 Wenatchee, WA Kenneth Pflueger PUD No. 1 of Douglas County 115 Valley Mall Parkway East Wenatchee, WA kpfluegere@dcpud.org John D. Martinsen Public Utility District No. 1 of Snohomish County P.O. Box 1107 Everett, WA jdmartinsen@snopud.com Mike McClenahan Public Utility District #2 of Grant County P.O. Box 878 Ephrata, WA Mmcclenahan@gcpud.org (509) Chelsey Neil Puget Sound Energy PO Box Bellevue, WA chelsey.neil@pse.com Paul Lau Sacramento Municipal Utility District 6001 S Street MS D109 Sacramento, CA paul.lau@smud.org Steven C Cobb Salt River Project (SRP) 6

8 Mail Station POB013 P.O Box Phoenix, AZ James L. Baggs Seattle City Light 700-5th Avenue, Suite 3200 PO Box Seattle, WA Shane Sanders Southwest Transmission Cooperative, Inc. P.O. Box 2195 Benson, AZ John Walsh Sundevil Power Holdings, LLC 701 East Lake Street Suite 300 Wayzata, MN John Lawrence Tacoma Power P.O. Box Tacoma, WA (253) Keith Carman Tri-State Generation and Transmission Association, Inc. P.O. Box Denver, CO John Tolo Tucson Electric Power 7

9 PO Box 711 Tucson, AZ Casey Hashimoto Turlock Irrigation District 333 East Canal Drive Turlock, CA Kevin Howard WAPA- Sierra Nevada 114 Parkshore Dr. Folsom, CA Sean Erickson Western Area Power Administration 5555 Crossroads Blvd. PO Box 3700 Loveland, CO

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